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71.07 (3p) (c) 6. No credit may be allowed under this subsection unless the 10claimant submits with the claimant's return a copy of the claimant's credit 11certification and allocation under s. 560.207.

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71.07 (3p) (d) 2. IfExcept as provided in subd. 3., if the allowable amount of 14the claim under par. (b) exceeds the tax otherwise due under s. 71.02 or 71.08 or no 15tax is due under s. 71.02 or 71.08, the amount of the claim not used to offset the tax 16due shall be certified by the department of revenue to the department of 17administration for payment by check, share draft, or other draft drawn from the 18appropriation account under s. 20.835 (2) (bn).

SB62, s. 9919Section
99. 71.07 (3p) (d) 3. of the statutes is created to read:

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71.07 (3p) (d) 3. With regard to claims that are based on amounts described 21under par. (b) that are paid by a dairy cooperative, if the allowable amount of the 22claim under par. (b) exceeds the tax otherwise due under s. 71.02 or 71.08, the 23amount of the claim not used to offset the tax due shall be certified by the department 24of revenue to the department of administration for payment by check, share draft, 25or other draft drawn from the appropriation account under s. 20.835 (2) (bp).

SB62, s. 1001Section
100. 71.07 (3r) of the statutes is created to read:

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3. "Meat processing modernization or expansion" means constructing, 8improving, or acquiring buildings or facilities, or acquiring equipment, for meat 9processing, including the following, if used exclusively for meat processing and if 10acquired and placed in service in this state during taxable years that begin after 11December 31, 2008, and before January 1, 2017:

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i. Computer software and hardware used for managing the claimant's meat 5processing operation, including software and hardware related to logistics, 6inventory management, production plant controls, and temperature monitoring 7controls.

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4. "Used exclusively" means used to the exclusion of all other uses except for 9use not exceeding 5 percent of total use.

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(b) Filing claims. Subject to the limitations provided in this subsection and s. 11560.208, for taxable years beginning after December 31, 2008, and before January 121, 2017, a claimant may claim as a credit against the taxes imposed under s. 71.02 13or 71.08, up to the amount of the tax, an amount equal to 10 percent of the amount 14the claimant paid in the taxable year for meat processing modernization or 15expansion related to the claimant's meat processing operation.

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(c) Limitations. 1. No credit may be allowed under this subsection for any 17amount that the claimant paid for expenses described under par. (b) that the 18claimant also claimed as a deduction under section 162 of the Internal Revenue Code.

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2. The aggregate amount of credits that a claimant may claim under this 20subsection is $200,000.

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3. a. The maximum amount of the credits that may be allocated under this 22subsection and ss. 71.28 (3r) and 71.47 (3r) in fiscal year 2009-10 is $300,000, as 23allocated under s. 560.208.

SB62,52,31b. The maximum amount of the credits that may be allocated under this 2subsection and ss. 71.28 (3r) and 71.47 (3r) in fiscal year 2010-11, and in each fiscal 3year thereafter, is $700,000, as allocated under s. 560.208.

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4. Partnerships, limited liability companies, and tax-option corporations may 5not claim the credit under this subsection, but the eligibility for, and the amount of, 6the credit are based on their payment of expenses under par. (b), except that the 7aggregate amount of credits that the entity may compute shall not exceed $200,000. 8A partnership, limited liability company, or tax-option corporation shall compute 9the amount of credit that each of its partners, members, or shareholders may claim 10and shall provide that information to each of them. Partners, members of limited 11liability companies, and shareholders of tax-option corporations may claim the 12credit in proportion to their ownership interest.

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5. If 2 or more persons own and operate the meat processing operation, each 14person may claim a credit under par. (b) in proportion to his or her ownership 15interest, except that the aggregate amount of the credits claimed by all persons who 16own and operate the meat processing operation shall not exceed $200,000.

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6. No credit may be allowed under this subsection unless the claimant submits 18with the claimant's return a copy of the claimant's credit certification and allocation 19under s. 560.208.

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(d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the 21credit under s. 71.28 (4), applies to the credit under this subsection.

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2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise 23due under s. 71.02 or 71.08, the amount of the claim not used to offset the tax due 24shall be certified by the department of revenue to the department of administration 1for payment by check, share draft, or other draft drawn from the appropriation 2account under s. 20.835 (2) (bd).

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71.07 (5d) (b) Filing claims. (intro.) Subject to the limitations provided in this 8subsection and in s. 560.205, a claimant may claim as a credit against the tax 9imposed under s. 71.02 or 71.08, up to the amount of those taxes,
the following:

SB62,53,13101. For taxable years beginning before January 1, 2008, in each taxable year for 112 consecutive years, beginning with the taxable year as certified by the department 12of commerce, an amount equal to 12.5 percent of the claimant's bona fide angel 13investment made directly in a qualified new business venture.

SB62, s. 10414Section
104. 71.07 (5d) (b) 2. of the statutes is created to read:

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71.07 (5d) (b) 2. For taxable years beginning after December 31, 2007, for the 16taxable year certified by the department of commerce, an amount equal to 25 percent 17of the claimant's bona fide angel investment made directly in a qualified new 18business venture.

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71.07 (5d) (c) 2. TheFor taxable years beginning before January 1, 2008, the21maximum amount of a claimant's investment that may be used as the basis for a 22credit under this subsection is $2,000,000 for each investment made directly in a 23business certified under s. 560.205 (1).

SB62,54,8171.07 (5e) (b) Filing claims. Subject to the limitations provided in this 2subsection and subject to 2005 Wisconsin Act 479, section 17, beginning in the first 3taxable year following the taxable year in which the claimant claims
an exemption4a deduction under s. 77.54 (48)
77.585 (9), a claimant may claim as a credit against 5the taxes imposed under ss. 71.02 and 71.08, up to the amount of those taxes, in each 6taxable year for 2 years, the amount of sales and use tax certified by the department 7of commerce that resulted from the claimant claimed as an exemptionclaiming a 8deduction under s. 77.54 (48)77.585 (9).

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71.07 (5e) (c) 3. The total amount of the credits and exemptionsthe sales and 14use tax resulting from the deductions claimed under s. 77.585 (9) that may be claimed 15by all claimants under this subsection and ss. 71.28 (5e), 71.47 (5e), and 77.54 (48)1677.585 (9) is $7,500,000, as determined by the department of commerce.

SB62, s. 1103Section
110. 71.10 (1) of the statutes is amended to read:

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71.10 (1)Allocation of gross income, deductions, credits between 2 or more 5businesses. In any case of 2 or more organizations, trades or businesses (whether or 6not incorporated, whether or not organized in the United States and, whether or not 7affiliated, and whether or not unitary) owned or controlled directly or indirectly by 8the same interests, the secretary or the secretary's delegate may distribute, 9apportion or allocate gross income, deductions, credits or allowances between or 10among such organizations, trades or businesses, if the secretary determines that 11such distribution, apportionment or allocation is necessary in order to prevent 12evasion of taxes or clearly to reflect the income of any of such organizations, trades 13or businesses. The authority granted under this subsection is in addition to, and not 14a limitation of or dependent on, the provisions of ss. 71.05 (6) (a) 24. and (b) 45., 71.26 15(2) (a) 7. and 8., 71.34 (1k) (j) and (k), 71.45 (2) (a) 16. and 17., and 71.80 (23).

SB62, s. 11116Section
111. 71.10 (1m) of the statutes is created to read:

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71.10 (1m)Transactions without economic substance. (a) If any person, 18directly or indirectly, engages in a transaction or series of transactions without 19economic substance to create a loss or to reduce taxable income or to increase credits 20allowed in determining Wisconsin tax, the department shall determine the amount 21of a taxpayer's taxable income or tax so as to reflect what would have been the 22taxpayer's taxable income or tax if not for the transaction or transactions without 23economic substance causing the reduction in taxable income or tax.

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(b) A transaction has economic substance only if the taxpayer shows all of the 25following:

SB62,56,211. The transaction changes the taxpayer's economic position in a meaningful 2way, apart from federal, state, local, and foreign tax effects.

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2. The taxpayer has a substantial nontax purpose for entering into the 4transaction and the transaction is a reasonable means of accomplishing the 5substantial nontax purpose. A transaction has a substantial nontax purpose if it has 6substantial potential for profit, disregarding any tax effects.

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(c) With respect to transactions between members of a controlled group as 8defined in section 267 (f) (1) of the Internal Revenue Code, such transactions shall 9be presumed to lack economic substance and the taxpayer shall bear the burden of 10establishing by clear and convincing evidence that a transaction or a series of 11transactions between the taxpayer and one or more members of the controlled group 12has economic substance.

SB62, s. 11213Section
112. 71.10 (4) (gv) of the statutes is created to read:

SB62, s. 1155Section
115. 71.22 (1g) of the statutes is amended to read:

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71.22 (1g) For purposes of s. 71.25 (9) (df) and, (dh), (dj), and (dk), "commercial 7domicile" means the location from which a trade or business is principally managed 8and directed, based on any factors the department determines are appropriate, 9including the location where the greatest number of employees of the trade or 10business work, have their office or base of operations, or from which the employees 11are directed or controlled.

SB62, s. 11612Section
116. 71.22 (1r) of the statutes is amended to read:

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71.22 (1r) "Doing business in this state" includes issuing credit, debit, or travel 14and entertainment cards to customers in this state; regularly selling products or 15services of any kind or nature to customers in this state that receive the product or 16service in this state; regularly soliciting business from potential customers in this 17state; regularly performing services outside this state for which the benefits are 18received in this state; regularly engaging in transactions with customers in this state 19that involve intangible property and result in receipts flowing to the taxpayer from 20within this state; holding loans secured by real or tangible personal property located 21in this state; owning, directly or indirectly, a general or limited partnership interest 22in a partnership that does business in this state, regardless of the percentage of 23ownership; and owning, directly or indirectly, an interest in a limited liability 24company that does business in this state, regardless of the percentage of ownership, 1if the limited liability company is treated as a partnership for federal income tax 2purposes.

SB62, s. 1173Section
117. 71.22 (1t) of the statutes is amended to read:

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71.22 (1t) For purposes of s. 71.25 (9) (df) and, (dh), (dj), and (dk), "domicile" 5means an individual's true, fixed, and permanent home where the individual intends 6to remain permanently and indefinitely and to which, whenever absent, the 7individual intends to return, except that no individual may have more than one 8domicile at any time.

SB62, s. 1189Section
118. 71.22 (3g) of the statutes is created to read:

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71.22 (3g) For purposes of ss. 71.26 (2) (a) 7. and 9. and 71.255 (2) (d) 1., 11"intangible expenses" include the following, to the extent that the amounts would 12otherwise be deductible in determining net income under the Internal Revenue Code 13as modified under s. 71.26 (3):

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(a) Expenses, losses, and costs for, related to, or directly or indirectly in 15connection with the acquisition, use, maintenance, management, ownership, sale, 16exchange, or any other disposition of intangible property.

SB62, s. 12213Section
122. 71.22 (9g) of the statutes is amended to read:

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71.22 (9g) For purposes of s. 71.25 (9) (df) and, (dh), (dj), and (dk), "state" means 15a state of the United States, the District of Columbia, the commonwealth of Puerto 16Rico, or any territory or possession of the United States, unless the context requires 17that "state" means only the state of Wisconsin.

SB62, s. 12318Section
123. 71.25 (intro.) of the statutes is amended to read:

SB62,59,211971.25Situs of income; allocation and apportionment. (intro.) For 20purposes of determining the situs of income under this section and s. 71.255 (5) (a) 211. and 2.:

SB62, s. 12725Section
127. 71.25 (9) (dj) of the statutes is created to read:

SB62,60,6171.25 (9) (dj) 1. Except as provided in par. (df), gross royalties and other gross 2receipts received for the use or license of intangible property, including patents, 3copyrights, trademarks, trade names, service names, franchises, licenses, plans, 4specifications, blueprints, processes, techniques, formulas, designs, layouts, 5patterns, drawings, manuals, technical know-how, contracts, and customer lists, are 6sales in this state if any of the following applies: